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This excerpt is part of
Entrepreneur.com's Second-Quarter Startup Kit which
explores the fundamentals of starting up in a wide range of
industries.

In Start Your Own Food Truck Business, the
staff at Entrepreneur Press and writer Rich Mintzer explain
how you can get started in the mobile food industry, whether
you want to own a food truck, cart, trailer, kiosk or other
on-the-go food business. In this edited excerpt, the authors
describe some of the licenses, permits, registrations and laws
you'll need to be concerned about as a mobile food business
owner.

Before you launch your mobile food
business, you need to get your licensing in order. But while
it would be impossible to list and explain all the numerous
permits and licensing requirements because each state, county and
city has their own, there are many universal concerns that need
to be addressed. Typically, your local department of health will
have the information you need, so you can get started by calling
to inquire about the necessary requirements.

Your state or city will have specific requirements that must be
met depending on your mode of operation. For instance, if you're
selling prepackaged foods, you're not considered a food handler
and may have less stringent requirements than if you're actually
preparing foods or even scooping ice cream.

While your vehicle designer won't know the nuances of each city's
requirements, they can usually help you meet health standards.
Before you can hit the road, health inspectors will inspect your
vehicle. In Washington, DC, for example, an inspection is
conducted to verify the following:

Copy of license for the service support facility and/or a
recent inspection report

Food vehicles are typically inspected at least once a year by a
health department inspector, sometimes randomly. The inspector
checks to see how food is stored so that it doesn't spoil and is
kept at the proper temperature. All food equipment as well as
sinks and water supplies are checked. Commercial kitchens and
garages in which food vehicles are kept are also inspected
frequently and can be fined if they don't meet health and fire
codes.

Keep in mind that permits need to be renewed. Renewal
applications are mailed to the last known address of the permit
holder as the permit nears expiration, so remember to update your
address should you move.

To be on the safe side, check with the proper regulating agencies
in your area regarding specific requirements for your vehicle.
For example, food preparers today are required to wear disposable
food preparation gloves, and all foods that require refrigeration
must be stored at proper temperatures.

As for retrofitting your vehicle, you'll want to start with the
must-haves to meet inspection requirements in your municipality.
You'll want to make sure everything retrofitted into your vehicle
is easily washable, from the floors to the walls to the
preparation and serving areas. From major food preparation
equipment down to proper dispensers for napkins, stirrers and
plastic utensils, you need to address everything in the vehicle
or kiosk from the safest, most sanitary perspective possible. The
department of health in your area will spell all this out in
detail.

In addition to the food service permits and health requirements,
you may also need to get business licenses in your city or
county. City hall or the county clerk's office can usually point
you in the right direction. Fees for business licenses are
generally under $100. If you are doing business under the name of
the truck or company, you'll need a DBA (Doing Business As)
certificate, which indicates that you're legally doing business
under a fictitious name.

In addition, in most states, business owners are required to
register their business with a state tax agency and apply for
certain tax permits as a seller. You may need to apply for a
state sales tax permit. Consult your local tax office or check
the IRS website. And if you're hiring
employees, make sure to get an Employer Identification Number
(EIN), aka a federal tax ID. The EIN is important because it
allows you to identify your business on government forms and
official documents. Your federal tax ID is used when you file
tax returns and also in place of your personal Social Security
(SS) number when you need to show business identification,
thus keeping your SS number off a lot of forms. Even if you're
not hiring employees, you'll need an EIN if you have
incorporated. The IRS makes it very easy to apply for EINs and
explains what you need to do on its website.

Don't forget that vehicle permits and inspections are also
required. If you're driving a vehicle, you'll need to have proper
vehicle registration. Carts and trailers may also need to be
registered. Make sure you check with the motor vehicle department
to find out what you need in your area.

While you need to have commercial plates on your vehicle, in most
cities and states, you only need a commercial driver's license if
you're operating a vehicle over 26,000 pounds. Check the vehicle
weight requirements in your state. Visit the Federal Motor Carrier Safety License
Administration for more information.

Towns, cities and counties also have zoning restrictions,
designating commercial and noncommercial zones. While you may be
mobile, you can't park just anywhere. Most areas limit food
trucks, trailers, buses and carts to specific locations. A list
of where you can and can't park should be available from the
county clerk. You may also have to adhere to two-hour parking
restrictions and pay for parking meters--yes, even carts.

Also be careful to park as close to the curb as possible--and
never double park. You should also find out about other,
lesser-known parking restrictions. Contact your local motor
vehicle department or look for a local website online with city
or town ordinances. For example, some municipalities have laws
stating that a food truck or cart cannot park within a school
zone or within X blocks of a school during school hours.